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CIT Looks Set to File for Bankruptcy

Published: Thursday, 16 Jul 2009 | 8:24 AM ET

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By: David Faber
CNBC Anchor and Reporter

CIT Group entrance
Photo by: Ernst Moeksis
I can report that CIT is likely to file bankruptcy tomorrow (Friday), though the situation remains fluid, according to a source close to the company.

The company has been taken by surprise at the failure of talks with its regulators to craft a solution over the last three weeks and is now pursuing a plan that is likely to include a Chapter 11 filing on Friday.

CIT [CIT Loading... () ] — a lender to hundreds of thousands of small and mid-sized U.S. businesses — said on Wednesday that bailout talks with the government had ended, a development that could ultimately drive the it into bankruptcy.

CIT Talks Fall Apart, Bankruptcy Filing Likely Friday

The news follows last-ditch talks in which Treasury officials had expressed concern about a worsening liquidity crunch at the 101-year old lender and indications that government aid would not put it on a path to recovery.

(Ed. Note: This post has been updated to clarify the day reference).

Questions? Comments? Write to .

Topics:Bankruptcy | Wall Street | Stock Market

Companies:CIT Group Inc

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